Understanding Workers' Compensation: Does It Cover Employee Deaths on Holidays or Due to Ill Health?

vishwanathsavula
I would like to have a small clarification about the Workers' Compensation Act in the case of an employee's death during his tenure with a company. Is the act applicable if the employee passes away on holidays or due to ill health?

Regards,
Vishwanath
R.N.Khola
Dear Vishwanath,

If the accident did not happen in the due course of and out of employment, then the workman's dependents are not entitled to any amount of compensation from the employer under the Employees' Compensation Act, 1923. For more details, you may go through section 3 on 'employer's liability for compensation' under this Act.

With Regards,
R.N.Khola

Cite Contribution
Dear Prerna,

The WC Act refers to the Workmen's Compensation Act of 1923. You may find detailed information about it in the attached links:

- [Workmen's Compensation Act 1923 Amendment](https://www.citehr.com/250306-workmens-compensation-act-1923-amended.html)
- [Fundamentals of Workmen's Compensation Act](https://www.citehr.com/105059-fundamentals-workmens-compensation-act.html)
- [Workers Compensation Act 1923 Overview](https://www.citehr.com/9447-workers-compensation-act-1923-wanna-read.html)

Should you have any further queries or need clarification, feel free to reach out.

Best Regards,

Cite Contribution

suyoglabourconsultants
Dear Vishwanathsahula,

It is a well-settled law that accidents or mishaps must be connected and occur in the course of employment for entitlement to compensation for his/her dependents under The Workmen/Employees' Compensation Act. Please refer to Mr. Khola's statement for further information.

Regards,
KIRAN KALE
Raj Kumar Hansdah
Dear Vishwanathsavula,

The Workmen's Compensation (WC) Act has been renamed as the Employees' Compensation Act. It covers injuries caused "out of" or "arising in the course of" employment.

Here, the phrase "out of" implies injuries that are a direct outcome of the work, such as those caused by accidents or mishaps. The phrase "arising in the course of" implies any injury while performing an official duty. This has a very wide scope and covers situations such as injuries while going to or coming from work, accidents while on an official tour, or any disease that is occupational or caused by long exposure to assigned work.

To answer your specific question: If an employee passes away on holidays or due to ill-health, then the Employees' Compensation Act is not invoked unless there is medical evidence that connects the death to the employment. For example, if an employee who was injured due to a work accident was on leave while recuperating or taking rest, then took a holiday, or during prolonged sickness caused by the accident/occupational hazards, and passes away, only in such cases does the eligibility for compensation exist.

I hope the above helps in clarifying your doubts.

Warm regards.
kannanmv
Dear Vishwanath,

The following conditions need to be considered for eligibility for payment of compensation under the Employees Compensation Act:

1. There should be an accident.
2. The accident should have resulted in a personal injury to the employee.
3. The accident should have happened in the course and out of employment.

In the case cited by you, none of the three conditions apply, so the question of compensation is ruled out.

For your information, I also cite the following that will be relevant to you (not applicable to the case cited by you):

There is also a Theory of Notional Extension in the Act that states if an employee is commuting to the place of work and dies, then it is deemed that he is in the course of employment. However, the mode of commute should be such that it was the only mode available, and the geographical location of the place was such that he could not have traveled by any other mode of transport.

Furthermore, there is a Personal Accident Policy (not statutory) that provides cover to employees not covered under the Employees Compensation Act. If the company covers its employees under the PA policy, the benefits are similar to the Employees Compensation Act. The difference is that the policy is payable by the respective Insurance Company instead of the Company itself. The unique feature of the PA policy is that it is 24 hours worldwide for any type of accident resulting in loss of earning capacity for the employee. For example, if an employee breaks his limb at home while climbing down stairs and experiences a loss of earning for a brief period, a Weekly benefit is payable to the employee, subject to 1% of the sum assured or a specified sum (approximately Rs. 3000 per week), whichever is lower. This policy ensures payment as stipulated above during the period the employee is on Loss of Pay due to the accident.

M.V. KANNAN
Raj Kumar Hansdah
Dear kannanmv,

It is not necessary that there should be an actual accident. Do you think that the Act is not applicable in the case of Occupational Diseases? They take a long time to develop, and compensation is payable under such circumstances.

Kindly refer to Section 3(2) of the Act, which specifically mentions Occupational Diseases. These are not actual accidents but, for the purpose of the act, deemed as accidents.

Warm regards.

Dear Vishwanath,

The following conditions need to be considered for eligibility for payment of compensation under the Employees' Compensation Act:

1. There should be an accident.
2. The accident should have resulted in a personal injury to the employee.
3. The accident should have happened in the course and out of employment.

In the case cited by you, none of the three conditions apply, so the question of compensation is ruled out.

M.V. KANNAN
dr.dksahoo
Mr. Rajkumar is absolutely right. If the death at home has no relationship with the work, then the Workers' Compensation Act cannot be applied.

Regards.
smbhappy
The ESI covers all risks under the ECA. Therefore, establishments covered under the ESI are not liable to pay any compensation under the ECA. It is far more beneficial to both employers and employees.
kannanmv
You are perfectly right in your statement on occupational diseases. Sorry I missed it out. Thanks for the correction.

Regards,
M.V. Kannan
Raj Kumar Hansdah
Dear smbhappy, you are correct; however, we must note that ESI coverage is limited.

Warm regards.
suyoglabourconsultants
Dear,

"Happy" is correct. Where the ESI Act is in force, the provisions of the Employees/Workmen Compensation Act as well as the Maternity Benefit Act are automatically barred as per the provisions made in the ESI Act because ESI is a compulsory Act. If I am not mistaken, Hyderabad is an implemented area under ESI.

Regards,
KIRAN KALE
Phillip Tsotetsi
Investigation of the Cause of Death

Investigation of the cause of death is paramount. Is the death caused by occupation or is it caused by the line of duty? If the answer is positive, the kith and kin of the deceased should be compensated.
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